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Calculate late payment interest & fees.

Under UK law, you are entitled to charge 8% interest plus the Bank of England base rate on late commercial payments.

Late Payment Calculator

Based on UK Late Payment Act 1998

How it works

1. Statutory Interest

The current rate is 8% plus the Bank of England base rate (approx. 5.25%). This is calculated daily.

2. Compensation Fees

You can charge a fixed fee for each overdue invoice:

  • Debt up to £999.99£40
  • Debt £1,000 - £9,999.99£70
  • Debt £10,000+£100

3. Reasonable Costs

If debt recovery costs you more than the fixed fee (e.g. using a collection agency), you can claim the difference.

100% compliant with Late Payment of Commercial Debts Act 1998

How is statutory interest calculated in the UK?

UK statutory interest is set at 8% plus the Bank of England base rate. For late payments, this interest is calculated as a simple daily rate. Businesses can also claim a fixed sum of compensation (£40, £70, or £100) and reasonable recovery costs for any overdue commercial debt.